Loss Of Technologists

Press, Volume CVI, Issue 31225, 24 November 1966, Page 18

Loss Of Technologists

The Canterbury Progress League last evening decided to set up an industrial development sub-com-mittee to prepare recommendations. One of its objects is to prevent losses of people with technical skills to Australia and the North Island.

The league will decide on membership of the subcommittee at its next meeting. The formation of the subcommittee was suggested by Mr C. G. Martin, a consulting engineer. He said he knew of 11 small companies—all in the technological innovation group—which were moving to. or were losing chief executives to Australia. The cause was a lack of understanding of the structure of industry by governments. “The Government believes, rightly or wrongly, that the economic growth rate of the country must be slowed down,” said Mr Martin. “But it does not understand the place of the technological innovator in industry and restrictions frustrate him and ultimately drive him away from New Zealand. “Our industry is exhorted to export. But we cannot export products made under licence to overseas companies. “We can only export our

own innovations and yet innovation is directly penalised and frustrated at two levels —import licensing and availability of loan monies.” Mr Martin said that if Canterbury could do something to improve, however slightly, the climate for innovators in this district, Canterbury could benefit enormously by attracting the new growth companies of tomorrow. What was needed, he said, was:

A lending institution which was willing to advance loan money to, and take

up equity shares in suitable approved companies. A group of thoroughly skilled and experienced investigator or referees who would assess the credit worthiness of applicants. The assessment must be made on longterm economic and technological prospects, not on ordinary accounting

consideration of credit worthiness. A vocal and representative pressure group, which could represent to government the needs of the potentially valuable innovator who was frustrated by import licensing.

In another part of New Zealand, said Mr Martin, a rather similar scheme was being organised. “The idea came from a trustee savings bank in the first place. “I think they are setting up a public company there, as a lending finance company,” he said.

Mr R. C. Neville said he thought that Mr Martin was talking in the wrong place. But he could see tremendous merit in the actual idea. “It does not seem to fit in with the objectives or abilities of this league,” he said.

Mr C. C. Austin said he thought the proposal was a challenge to the Province of Canterbury. He could see no harm in a small committee being formed to investigate the subject.